Blacks suffer most in U.S. foreclosure surge

[MdmeX]

RE: Blacks suffer most in U.S. foreclosure surge

Thanks Karl - I was waiting for your response.

And some of us once we buy the house, we dash whey all the furniture we had B4 and put we self in more debt for a houseful of new furniture.

Not to mention the MUST HAVES for some of us - the SUV, the Lexus, the BMW and the Benz = MORE DEBT!! Got to pop style(Tant)

[Briggie]

RE: Blacks suffer most in U.S. foreclosure surge

Too often the purchase of a home has an emotional facet to it. A first time home buyer will nearly agree to anything when it comes to securing a mortgage to purchase that home. In addition lack of education and savvy leads many of us who qualify for a conventional loan to be utilizing the services of a mortgage broker who will direct you to the lender who he/she will make the most money off on the back end of a mortgage. The mortgage business over the last few years was freewheeling and filled with unscrupulous person. n that climate the uneducated and unaccustomed unfortunately get ripped off.

[Karl]

RE: Blacks suffer most in U.S. foreclosure surge

Briggie (3/21/2007)Too often the purchase of a home has an emotional facet to it. A first time home buyer will nearly agree to anything when it comes to securing a mortgage to purchase that home.

That purchasing anything, be it a home or a toothbrush or whateverhas some degree of emotional facet is a fact.

Why would you expect a first time homebuyer to agree to almost anything to purchase a home? Perhaps, you were once a first time homebuyer? If you were, did you agree to almost anything to buy that house?

In addition lack of education and savvy leads many of us who qualify for a conventional loan to be utilizing the services of a mortgage broker who will direct you to the lender who he/she will make the most money off on the back end of a mortgage. The mortgage business over the last few years was freewheeling and filled with unscrupulous person. n that climate the uneducated and unaccustomed unfortunately get ripped off.

I would prefer to saywe all make decisionsusing the facts we have at hand. If we do not have all the facts we need our decisions will be...MUST BEbased on those facts we have. The borrower can only bedirected to a loan source...he/she or they cannot be forced to use that source.

Do you realise that there are OFTEN times when the retail banking outletsdo not offer mortgage products that can satisfy the needs of the prospective buyers? Do you not also know that "A" buyers canat times find a mortgage that best satisfy their needs using a mortgage broker ratherthan using theretail outlets available to them?

When a borrower gives a mortgage lien on the property he/she is purchasing,the one over-riding factor MUST bethat it 'makes sense'. There are tens of thousands of lenders it is just about impossible for the mortgage broker to find the absolute bestone for each individual...but, the mortgage brokeris better placed to find one better suited thanthe individual can. Let us face facts the individual borrower canill afford the time toseek out thousands of lenders.It is certainly more efficient for a mortgage broker to do the job. Certainly the prospective borrowercan and should aid his her cause by at least walking into the local retail bank and finding out if a goodmortgage product suitable for his/her aims is offered. The borrower should then use that knowledge to his/her advantage by asking the mortgage broker tofind amortgage product better suited to his/her needs.

I have found that thereare,in the main, two types of persons who call on me for my services - the experienced seekers of mortgage productsand those rejected by the retail banks.

The uninformed usually walk in a retail bank andis allowed to give a mortgage or is rejected and gives up.

The uninformed takes it for granted that the retail outlet always gives the 'best rates' when nothing is morefurther from the truth. The truth is most retail banks have an association with mortgage brokers...and facilitate origination of loans by giving the mortgage brokers wholesale rates which often allow for better rates to the potential borrower than walking in the door of the banks' retail outlet. Why do the banks do that? It has to do with reaching and claiming marketshare. It has to do with the banks' bottomline.

Getting that money to facilitate purchase of a home or property (i.e. giving a mortgage) must be on terms favourable to the borrower...if it is not - DO NOT TAKE THE MONEY! DO NOT BORROW!

One other thing it is downright silly to be factoring in what a mortgage broker may make. Certainly it would be silly for me to take a loan thatWOULDNOTsatisfy my needs form a broker who would make "x" dollars rather than one that would satisfy my needs from a broker who would make 1000 times "x" dollars. For t

[Jawge]

RE: Blacks suffer most in U.S. foreclosure surge

Karl I sort of laughed when I saw the attorney

post, but many times I just hold back and not say aword. You made two excellent post. This and the one below. Man fi pay fi dem tings deh :P this is america capitalist place LOL

[T.K.]

RE: Blacks suffer most in U.S. foreclosure surge

Karl (3/21/2007)Many are the owners who followed the attorney's 'direction'who now have problems with the mortgage products 'they purchased'.

Karl I agree with your post 99.9%. I only disagree with the quote above. I don't know who those many are you are talking about but when you have Re Lawyer look over every piece of paper you sign and explain to you the "hidden" fees and small print trap doors if you still have problems with the mortgage you brought then you are either fool fool or the unluckiest man in the world.

I have lawyer who I never do anything without him going over every contract with a fine tooth comb. This guy has saved me overfew hundred thousand at least. A life saver. While Donald Trump can afford to have a bad deal once in a a while most of us who will be devastated by a crap mortgage should really have Re lawyer and financial adviser guiding us. It will save so much heart ache and much needed resourcesin the end. - T.K.

[Briggie]

RE: Blacks suffer most in U.S. foreclosure surge

Karl your analysis sems to be divorced from the reality of the sub=prime borrower. Firstly, they are usually unsophisticated as to matters of mortgages and therefore are extremely reliant on their mortgage professional. Most mortgage brokers faced with a client who qualifies for a prime loan at Chase is not going to send that prospective client to Chase. They will do the loan themselves and maybe the client gets a similar rate to the one Chase would have given them but they are paying the mortgage broker points for their service. An expense they would not incur if they had walked through the doors of Chase. For those wh aren't aware each point is one percentage of the loan amount. So for instance in a high priced market like New York these fees are typicaly in excess of ten thousand dollars for the typical subprime loan made in New York City. Additionally, like many instances in life a mortgage broker has a conflict of interest when procuring a loan for a client. The conflict is whether to get the best possible loan for the client or get the loan that is going to be the most lucrative for the mortgage broker. I know first hand that many brokers choose their interestover the client's. Which is one of the reasons that millions of people are now in trouble with mortgages that rightfully should not have been issued. The chance to fulfill the American Dream oftentimes overrides all those good things you spoke aboutKarl,should happen on the part of the consumer.